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Demand Based Pricing: Described methods belong to the category of demand / market based pricing:-
1. What the Traffic can Bear' Pricing
2. Skimming Pricing
3. Penetration Pricing
The price elasticity of demand is taken into account in all of the demand based pricing methods, indirectly or directly. Price elasticity of demand refers to the relative sensitivity of demand for a product to changes in its value in other words how significantly the sales of the product are affected when price is changed. If decrease or increase in the price of the product results in significant increase or decrease the product is said to be price elastic conversely, if price change does not considerably affect the sales volume, a product is called to be price inelastic.
Skimming Pricing This pricing strategy dictates that the price of an item will be introduced into a market must be as high as possible. Thus, it is identifying the segment of t
Nature of the marketing: 1. Specialized business function: in the early days, the selling function did not call for any specialized skills as the sales could have been a
(x+2)^2
Marketing communications Marketing communications have been used to convey product-related information to customer-based audiences. Today, a range of stake holders have connec
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Considering the concept of product life cycle, where would you put video games in their life cycle
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